Congress
passed a federal budget bill in early February that revived dozens of expired
tax breaks for the 2017 tax year. They include a deduction for education
expenses as well as several tax breaks for homeowners.
If
you have not yet filed your 2017 tax return, please be aware these late changes
are retroactive to the beginning of 2017. Check
out this list of the most useful tax breaks to see if they apply to your
situation:
Tuition
and fees deduction. If you paid
qualified tuition and related higher education expenses, you may be able to
deduct as much as $4,000 of those costs. This can be done on a regular return
(without itemizing). The deduction is capped at $4,000 for single filers with
adjusted gross income (AGI) of $65,000 or less ($130,000 joint) and at $2,000
for single filers with AGI of $80,000 or less ($160,000 joint).
Mortgage
insurance deduction. If
you paid mortgage insurance premiums, you may now be able to deduct those
amounts as an itemized deduction. This deduction begins to phase out for
taxpayers with AGI of $100,000 or more.
Mortgage
debt forgiveness exclusion. If
qualifying mortgage debt on your primary residence was discharged or forgiven,
you can exclude that amount from your income.
Energy-efficient
home improvement credit. Energy-efficient
home improvements (such as upgrades to windows, or heating and cooling
systems), may be eligible for a tax credit equal to 10 percent of the amount
paid, up to $500.
If
you think any of these apply to you, bring all the related documentation to
your tax filing appointment. If you have already filed, you may need to file an
amended tax return to capture these very late law changes.
Call
us at (219) 769-3616 with your questions, or email them to tlynch@swartz-retson.com.
